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What do you mean by price elasticity of demand? |
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Answer» Price elasticity of demand is a measure of the responsiveness of the demand for a good to change in its price. In the words of Prof. Stonier & Hague, “Price elasticity of demand is a technical term used by economists to describe the degree of responsiveness of the demand for a good to a change in its price. It is measured by using the following formula. PED = (Percentage change in demand for the good/Percentage change in price of the good) |
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